Assignment by Assignor Subject to Royalty Interest Clause Samples

The "Assignment by Assignor Subject to Royalty Interest" clause establishes that when the assignor transfers their interest in a property or asset, the assignment remains subject to an existing royalty interest. In practice, this means that any rights or benefits assigned will continue to be encumbered by the obligation to pay royalties to a third party, such as the original owner or a royalty holder. This clause ensures that the royalty interest is preserved and that the assignee is aware of and bound by the ongoing royalty obligations, thereby protecting the rights of the royalty holder and preventing disputes over payment responsibilities after the assignment.